Nvidia shares fell almost 10%, erasing $278.9 billion in value—the biggest single-day loss ever for a US stock¬— but investors shouldn’t write-off this chipmaker, and should consider using it as a buying opportunity, and explore the wider AI ecosystem.
This is the bullish response from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations, as Nvidia’s steep fall wiped almost $300 billion in market cap off the chipmaker and weighed on the broader market.
He says: “Over the past three sessions, Nvidia is now down 14% after earnings that fell short of lofty expectations.
“The entire Philadelphia Semiconductor Index sank, with every member falling by at least 5.4%.
“Nvidia faced further pressure as the US Justice Department issued subpoenas in an antitrust investigation, sending its stock down another 2% in late trading.
“As concerns grow that AI’s promised revolution might take longer than anticipated, some investors are rethinking the high valuations. But this is no time to write off Nvidia.”
Despite the recent turmoil, Nvidia remains at the forefront of the AI revolution. Its cutting-edge GPUs are critical to AI applications across industries, from data centers to autonomous vehicles.
“Nvidia is still up 118% for the year. The market may be reacting to short-term concerns, but Nvidia’s role in the future of AI remains solid. This dip should be viewed as a temporary setback, not a sign of declining relevance,” notes the deVere CEO.
For investors with a long-term view, Nvidia’s dominant position in the AI landscape makes it a core holding.
Many investors will use this pullback as a buying opportunity.
Nigel Green continues: “Nvidia’s sharp drop offers an attractive entry point into a company that continues to lead in the AI sector.
“The company’s fundamentals remain strong, and this correction provides a chance to accumulate shares at a discount.
“Investors who understand Nvidia’s long-term growth potential recognize that its value is not tied to quarterly fluctuations but to the overarching AI trend that is set to reshape industries for years to come.
“Beyond Nvidia, this is also a moment to consider the broader AI ecosystem. While Nvidia is a key player, the AI revolution is a much larger story involving numerous companies.
“Semiconductor manufacturers, AI software developers, cloud providers, and countless other firms are poised to benefit as AI adoption increases across sectors. The recent downturn in AI-related stocks, reflects short-term fears but offers long-term opportunities. In-the-know investors will look beyond the immediate market noise and focus on the companies driving AI’s continued expansion.”
Ultimately, Nvidia’s recent stock decline is more of a market recalibration than a signal of trouble ahead. AI’s promise remains intact, and Nvidia will continue to be a critical enabler of that future. The company’s GPUs power the AI revolution, and demand for its products is expected to grow as AI becomes more integral to global economies.
For those with a long-term view, Nvidia’s current dip is a chance to buy into a company that will continue to shape the future.
“This pullback is not just a buying opportunity for Nvidia, but for the entire AI sector. Investors who take the long view will recognize that AI’s transformative potential far outweighs the current market volatility,” concludes the deVere CEO.
